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Southern Arc Completes $11,112,400 Equity Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 18, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Southern Arc Minerals Inc. (TSX VENTURE:SA) is pleased to announce that it has completed its brokered private placement in the amount of 8,960,336 units (the "Units") at a price of $1.20 per Unit for gross proceeds to the Company of $10,752,403. Each Unit consists of one common share and one-half of a transferable share purchase warrant. Each full warrant is exercisable into one additional common share at an exercise price of $1.75 per common share for a period of two years.

Haywood Securities (U.K.) Ltd. and Canaccord Capital Corporation acted as lead agents in connection with the offer and sale of the Units. The Company paid an aggregate of $698,906 in cash commissions and issued an aggregate of 582,422 Agents' Warrants. Each Agents' Warrant is exercisable into one common share at an exercise price of $1.20 per common share for a period of one year.

In conjunction with the brokered private placement, the Company has also completed a non-brokered private placement in the amount of 300,000 Units for gross proceeds to the Company of $360,000. No commissions or finder's fees are payable in connection with the non-brokered private placement. The Company may complete an additional tranche of the private placement on a non-brokered basis.

The proceeds of the private placement will be used for exploration and development on the Company's mineral properties in Indonesia and for general working capital.

All of the securities are subject to a hold period expiring April 18, 2008.

On Behalf of the Board of Southern Arc Minerals Inc.

John G. Proust, President and CEO

The securities described in this press release will not be or have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.